CATARC report - August 2018: NEV trends in China
New energy vehicle production reaches 80,000 units in July
Production volumes in China (Summary)
This report is based on a report by Beijing CATARC Automotive Technology Development Company*;
MarkLines has edited and translated the company's report to prepare this report. Click here for a list of CATARC reports.
Production volume of new energy vehicles (electric vehicles [EVs], plug-in hybrid vehicles [PHVs], and fuel cell vehicles [FCVs]; excluding vehicles equipped with a lead-acid battery) in July 2018 slightly increased by 27.82% month-over-month (m/m). By vehicle type, production volume of EVs and PHVs accounted for 72% and 28%, respectively, of the production share, and passenger cars, buses and special-purpose vehicles accounted for 88%, 4% and 8%, respectively, of the share.
Production volume of new energy vehicles in July 2018 was on an expanding trend after production was adjusted in June. In particular, expansion of production volume of passenger cars was notable. In addition to the SAIC Roewe SUV, which many units were produced in the first half of 2018, new models, such as the BAIC EX360, BYD Yuan, Emgrand GSE, and Chery Tiggo 3xe480, drove the expansion of passenger car production.
Production volumes in China
Production volume of EVs in July 2018 increased by 28.45% m/m and by 12.35% year-over-year (y/y). Production volume of passenger EVs increased by 26.78% m/m and by 38.94% y/y. Thirty-one automakers produced passenger EVs, and 11 of them produced more than 1,000 units. By brand, BYD ranked first, significantly surpassing the other brands.
Production volume of electric buses declined by 12.44% m/m and by 44.04% y/y. Twenty-six bus makers produced electric buses, and most of them had a length of 10 m or greater. By drive battery, most of the buses produced were equipped with a lithium-iron phosphate battery, and none of them were equipped with a ternary battery.
Production volume of electric special-purpose vehicles increased by 95.01% m/m and declined by 43.57% y/y. Forty-five vehicle makers produced electric special-purpose vehicles, and Dongfeng Motor Corporation (DFM) was the only maker that produced over 1,000 units. By use, most of the vehicles were for cargo-transport use.
Production volume of PHVs in July 2018 increased by 26.28% m/m and by 72.73% y/y.
Production volume of passenger PHVs increased by 24.84% m/m and by 92.91% y/y. Twelve automakers produced passenger PHVs. By brand, BYD ranked first, followed by Roewe. Four automakers―BYD, SAIC Roewe, Brilliance BMW, and Geely Automobile―produced over 1,000 units. By drive battery, all vehicles were equipped with a ternary battery.
Production volume of plug-in hybrid buses increased by 295.70% m/m and declined by 75.88% y/y. Six bus makers produced plug-in hybrid buses in July, and only Xiamen King Long produced more than 100 units. By drive battery, all buses were equipped with a lithium-ion manganese-oxide battery. By battery supplier, most of the buses were equipped with a battery by CITIC Guoan MGL.
Production volume of FCVs in July 2018 declined by 53.85% m/m and increased by 20% y/y.
Trends in China
MIIT requests each company to submit vehicle-production capacity data
On August 1, 2018, the Ministry of Industry and Information Technology (MIIT) notified each company and production site to submit its production capacity after completion (including new energy vehicles) data as of August 2018. Production capacity after completion is the production capacity of a production site that acquired production authorization (calculated based on the investment project or the production capacity determined in the application). Production capacity of new energy vehicles includes the shared production-facility capacity of a production facility for new energy vehicles and internal-combustion-engine vehicles.
MOF exempts vehicle and vessel tax on new energy vehicles
On July 31, 2018, the Ministry of Finance (MOF) announced that it will reduce vehicle and vessel tax on energy-efficient vehicles by half and exempt vehicle and vessel tax on new energy vehicles and vessels. An energy-efficient vehicle is a gasoline or diesel passenger car with an engine displacement of 1.6 liters or less sold in China. New energy vehicles exempt from vehicle and vessel tax are commercial EVs, PHVs (including range extenders), and commercial FCVs. Furthermore, passenger EVs and passenger FCVs are not subject to vehicle and vessel tax.
MOT hurries to establish technical document for autonomous-driving closed test sites
The Ministry of Transport (MOT) released a “construction technical guideline for autonomous-driving closed test sites (interim enforcement)”. At the same time, the agency released information regarding the certification of autonomous-driving closed test sites and the progress of autonomous-driving tests and technologies currently under development. This technical guideline is the first technical document on the construction of autonomous-driving closed test sites established by the agency. Based on this document, the MOT certified the construction of an autonomous-driving closed test site to three companies―Research Institute of Highway Ministry of Transport, Chang'an University, and Chongqing Vehicle Test & Research Institute Co., Ltd. These companies were the first to be certified.
CATARC releases regulation to assess CO2 emissions of new energy vehicles
China Automotive Technology and Research Center Co., Ltd. (CATARC) released a “regulation to assess carbon-dioxide emissions of new energy vehicles in China”. Assessment will start from July 2018. Passenger EVs with a high market share will be selected and assessed through data from the investigation and research companies of the industry. CATARC will release the assessment results of the carbon-dioxide emissions of the entire lifecycle of the assessed passenger EVs by the end of 2018.
Beijing municipal government exempts electricity base charge for public chargers until 2025
The Beijing Municipal Development and Reform Commission released a “notice on the implementation of an electricity-use support policy subject to some environmental protection industries in the city”. From August 2018, the Beijing municipal government will exempt base charge until December 2025 to EV-centralized charging facilities, sewage treatment facilities, power-operating facilities for ports, seawater desalination facilities, etc. that implement a two-part charge system. In other words, the policy on the exemption of electricity base charge for public chargers in Beijing City will be extended for five years.
Beijing municipal government releases subsidy policy for new energy vehicles
On July 19, 2018, the Beijing Municipal Bureau of Finance, Beijing Municipal Commission of Science and Technology, and Beijing Municipal Commission of Economy and Information Technology released a notice on the adjustment to the subsidy policy for the widespread use of new energy vehicles in Beijing City. For new energy vehicles (EVs and FCVs), subsidies will be paid by the central government and by the local government (half the amount paid by the central government). Refer to the “notice on the adjustment to the subsidy policy on the widespread use of new energy vehicles (fiscal reform  no. 18)” for technical requirements. The subsidy policy will be in effect from January 2018 to December 2020. In the case the central government policy is adjusted, the subsidy policy by the Beijing municipal government will be enacted separately based on the central government policy.
Ningbo municipal government releases 2018 local subsidy policy
The Ningbo Science & Technology Bureau of Zhejiang Province released a “notice on the 2018 government subsidy policy for the widespread use of new energy vehicles in Ningbo City”. For EVs, PHVs (including range extenders), and FCVs that meet the requirements in Ningbo City, subsidies will be paid by the central government and the local government (half the amount paid by the central government). For new energy special-purpose vehicles and cargo trucks, the maximum subsidy paid will be CNY 16,000. For new energy vehicles to be leased, the subsidy paid by the local government will be 25% of the above mentioned standard.
Tianjin municipal government releases public-road-test management regulation for connected cars
On July 5, 2018, three government agencies of Tianjin City released a “notice on the public-road-test management regulation for connected cars in Tianjin City (trial)”. According to the notice, based on innovation encouragement, safety security, overall plan, and regular promotion in principle, the government will support connected cars in Tianjin City from development/test through trial run/commercialization. It is made clear that the government encourages the development of the connected car industry in Tianjin City.
Geely New Energy and State Grid EV agrees on strategic cooperation
On August 4, 2018, State Grid EV Company and Geely New Energy agreed to establish a smart car service platform in Beijing and to cooperate in various areas, such as clean-energy ecology chain and new-energy custom-made cars. The agreement includes building a new business style, expanding the scope of cooperation, and accelerating the construction of resource chains.
Karry K60 EV to be released on August 8
The Karry K60 EV will officially be released on August 8, 2018. The vehicle is equipped with a motor with a maximum output of 80 kW and a nickel cobalt lithium-ion manganese-oxide battery. It also has an energy density of approximately 151.86 Wh/kg and an overall cruising range of 351 km.
GAC Mitsubishi Motors to release new Qizhi PHEV on August 11
GAC Mitsubishi Motors Co., Ltd. (GMMC) will release its first Qizhi PHEV in eight cities―Guangzhou City, Shenzhen City, Hangzhou City, Tianjin City, Changsha City, Shenyang City, Xi'an City, and Chongqing City―on August 11, 2018. The drive-battery supplier was changed from Wanxiang America Corporation to Contemporary Amperex Technology Co., Ltd. (CATL).
Trumpchi GE3 530 to be released on August 28
The Trumpchi GE3 530 that was announced in June 2018 will be officially released on August 28. The vehicle comes in two versions, and the base price is CNY 140,000. It has a cruising range of 410 km in NEDC mode.
FAW Pentium B30 EV is released
The FAW Pentium B30 EV was officially released. The vehicle comes in two versions, and price tags before subsidy are CNY 173,800 and CNY 183,800 each. It has an overall cruising range of 205 km.
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